H.B. 20 Enrolled

CONSTRUCTION BONDING STATUTES
2004 GENERAL SESSION
STATE OF UTAH
Sponsor: Michael T. Morley

LONG TITLE
General Description:
This bill modifies provisions requiring preliminary notice in certain bond actions.
Highlighted Provisions:
This bill:
. provides that in certain bond actions, including actions under state procurement, a
preliminary notice is not required to be filed if a notice of commencement is not
filed; and
. makes technical changes.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
14-1-20, as enacted by Chapter 271, Laws of Utah 1989
14-2-5, as enacted by Chapter 271, Laws of Utah 1989
63-56-38.1, as enacted by Chapter 271, Laws of Utah 1989

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 14-1-20 is amended to read:
14-1-20. Preliminary notice requirement.
[Except persons who are in privity of contract with a payment bond principal or except
for persons performing labor for wages, any]

(1) Any person furnishing labor, service, equipment, or material for which a payment
bond claim may be made under this chapter shall provide preliminary notice to the payment bond
principal as prescribed by Section 38-1-27 [.], except that this section does not apply:
(a) to a person who is in privity of contract with the payment bond principal;
(b) to a person performing labor for wages; or
(c) if a notice of commencement is not filed as prescribed in Section 38-1-27 for the
project or improvement for which labor, service, equipment, or material is furnished.
(2) Any person who fails to provide [this] the preliminary notice required by Subsection
(1) may not make a payment bond claim under this chapter.
(3) The preliminary notice required by Subsection (1) must be provided prior to
commencement of any action on the payment bond.
Section 2. Section 14-2-5 is amended to read:
14-2-5. Preliminary notice requirement.
[Except subcontractors who are in privity of contract with a payment bond principal or
except for persons performing labor for wages, any]
(1) Any person furnishing labor, service, equipment, or material for which a payment
bond claim may be made under this chapter shall provide preliminary notice to the payment bond
principal as prescribed by Section 38-1-27 [.], except that this section does not apply:
(a) to a person who is in privity of contract with the payment bond principal;
(b) to a person performing labor for wages; or
(c) if a notice of commencement is not filed as prescribed in Section 38-1-27 for the
project or improvement for which labor, service, equipment, or material is furnished.
(2) Any person who fails to provide [this] the preliminary notice required by Subsection
(1) may not make a payment bond claim under this chapter.
(3) The preliminary notice required by Subsection (1) must be provided prior to
commencement of any action on the payment bond.
Section 3. Section 63-56-38.1 is amended to read:
63-56-38.1. Preliminary notice requirement.

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[Except subcontractors who are in privity of contract with a payment bond principal or
except for persons performing labor for wages, any]
(1) Any person furnishing labor, service, equipment, or material for which a payment
bond claim may be made under this chapter shall provide preliminary notice to the payment bond
principal as prescribed by Section 38-1-27 [.], except that this section does not apply:
(a) to a person who is in privity of contract with the payment bond principal;
(b) to a person performing labor for wages; or
(c) if a notice of commencement is not filed as prescribed in Section 38-1-27 for the
project or improvement for which labor, service, equipment, or material is furnished.
(2) Any person who fails to provide [this] the preliminary notice required by Subsection
(1) may not make a payment bond claim under this chapter.
(3) The preliminary notice required by Subsection (1) must be provided prior to
commencement of any action on the payment bond.

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